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6/14/18
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The transaction was executed through Canyon Multifamily Impact Fund III LLC (“CMIF III”), a joint venture between Canyon and CIT Bank, N.A. (“CIT”), with CIT’s Real Estate Finance business also providing a $20.4 mil senior loan to fund the acquisition and capital improvements.
The price was not disclosed. The Harvey is the second acquisition to date by CMIF III. As part of the acquisition, the property will be renamed The Derby Hollywood to reflect its historically rich Hollywood location, the neighborhood’s history rooted in film and entertainment and the celebrities depicted in the building’s mural.
The Derby Hollywood is located directly on Santa Monica Boulevard, in close proximity to some of Los Angeles’ most notable and thriving neighborhoods including West Hollywood, Silver Lake, Koreatown and Downtown Los Angeles (DTLA), and provides its residents convenient access to desirable retail and lifestyle amenities within the Hollywood submarket. In addition, there are more than 650,000 jobs within a five-mile radius with substantial employers including Netflix, Paramount Pictures, Kaiser Permanente, Children’s Hospital Los Angeles, Cedar-Sinai Medical Center and Los Angeles City College. FPI Management, a California-based management company with strong experience in this market and a history working with CMIF and Canyon, will serve as The Derby Hollywood’s property manager.
CMIF III’s capital plans include enhancements to the property such as creating outdoor community space, re-envisioning the ground floor retail and developing a variety of resident impact programs.
CMIF III is strategically positioned to target acquisition opportunities in Southern California and promotes the implementation of resident programs through a variety of education, healthcare and community initiatives designed to benefit both residents and the communities in which they live and work. This is the third fund within Canyon’s workforce housing platform dedicated to advancing community development and embracing environmental responsibility. CMIF III is also directly in line with CIT’s pledge to invest in the betterment of the communities in which it serves.
This recent acquisition of The Derby Hollywood builds upon the success of Canyon’s existing Multifamily Impact Funds which have improved multifamily properties by making long-term, material, positive impacts in targeted communities across the United States. To date, CMIF has acquired over $400 mil of workforce housing, representing approximately 4,000 units and 3.3 msf.
Though Canyon’s practice has a national footprint, they have a broad range of experience investing in California. In the past five years, Canyon has deployed over $1 bil in 48 California investments through senior loans, mezzanine loans, preferred equity and common equity, with over $700 mil of investments in Southern California alone.
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